Stock Talk: 2nd Day - 225 Futures / Technical Points and Outlook [Reference indicators for Fear & Greed index, temporarily surpassing the 125-day MA, Dow vs. 225 futures]

Week of August 30, Outlook for Tokyo Stock Exchange on September 2, 225 futures outlook, technical points

Comments on 225 futures ※Note 3 MA = moving average

The night session high reached 28,660 yen, briefly surpassing the 125-day moving average, which is used as a reference index for fear and optimism, and the willingness to test a rebound has become clear.

U.S. stocks show the Dow Jones Industrial Average continuing to move with heaviness after three straight declines, but the Japanese stock market remains resilient as a reference indicator, with a strong sense of a higher toeing trend for Japanese stocks.

Before you know it, the daily chart has easily surpassed the +2σ of the Bollinger Band, and +3σ is also in sight.

That is evidence of strong buying demand, as the 20-day moving average remains well above the 25-day moving average.

The night session low repeatedly faces resistance around the 100-day moving average, with the closing price holding in the 28,500 yen range and ending near the VWAP level.

For today’s movement, we anticipate continuation of the momentum, and the bullish outlook for Japanese stocks is strengthening.

As individual stock advance/decline ratios are expected to ease appropriately, the index futures show no signs of overheating in the oscillator, and the 52-day RCI shows signs of a full ascent.

Exceeding the Bollinger Band +3σ is relatively easy; if it does, the price movement could gain speed in a relatively short time as the timing for adjustments accelerates.

It may not be a flow that easily collapses; unless major external factors such as geopolitical or political risks arise, the price movement is likely to be less prone to turmoil.

Week of August 30, September 2 – Nikkei 225 futures milestones and technical points